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Emami Paper Mills Ltd’s promoters would invest Rs 120 crore in the company without increasing their voting rights. The promoters, who hold 74.97 per cent, will pick up 30 lakh cumulative redeemable non-convertible preference shares of Rs 100 each at a premium of Rs 300 each.
The company said the proceeds would be utilised for part financing its expansion project at Balasore in Orissa for manufacturing 1 lakh TPA multi-layer coated board paper.
Emami sources said large part of the preference shares would be issued during this financial year on preferential basis. A portion of it, however, would spill over to the next fiscal.
The Rs 2 Emami Paper stock jumped 5 per cent on Monday to close Rs 26.25 on the BSE as the company had announced the investment plan after market hours on Friday, the day on which the company’s board approved the proposal.
The profit-making company, a part of the Kolkata-headquartered Emami Group, has facilities to manufacture newsprint and writing and printing paper.
>jayanta.mallick@thehindu.co.in
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